THE CLARKE AGENCY, INC.

As part of its plan to stimulate the U.S. housing market, Congress has passed legislation that grants a tax credit of up to $8,000 for first-time home buyers that purchase a home between January 1, 2009 and December 1, 2009. To qualify as a “first-time home buyer”, the purchaser or spouse may not have owned a residence during the three years prior to the purchase. The tax credit may be applied to primary residences, including single family homes, town homes, or condominiums.

The maximum allowable credit for home buyers is $8,000 and is determined by two factors. First, the credit is equal to 10% of the purchase price of the home, not to exceed $8,000. Secondly, single buyers with annual income up to $75,000 and married couples with incomes up to $150,000 may receive the maximum tax credit. The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for jointly filing buyers. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income (over $95,000 for singles and over $170,000 for couples) are not eligible for the credit. The buyer does not need to repay the tax credit, if he/she occupies the home for three years for more.

For more information, buyers should consult their tax account or local Realtor.

The Clarke Agency, Inc.
241 N. Main Street
P. O. Box 1067
Gunnison, CO 81230

Phone: (970) 641-0511
Fax: (970) 641-9252
Email Clarke Agency